“Insights on Valuation”

The latest issue of our “Insights on Valuation” newsletter is now available. Arxis Financial, Inc. is pleased to provide this highly respected, nationwide publication which features valuable information that is applicable to many litigation matters. Topics in this issue include:

  • Baby Boomer Business Owners: Start Exit-Planning Now— Baby boomer business owners in the United States are looking to turn their years of sweat and toil into cash for retirement, but the faltering economy rapidly turned the seller’s market of a few years ago into a buyer’s market, negatively impacting value. Adding to their woes, the large number of baby boomers who own businesses wanting to sell will likely result in a glut of businesses on the market in the coming years, which can further depress prices …

  • Understanding Business Valuation Reports — Whether you are a practicing attorney, an investor, or a small business owner there may come a time when you need to read and understand a report written to support a conclusion of value for a business. A well written valuation report is difficult to understand by those who are not well-versed in the terminology and principles of business valuation. There are several very common errors that are easily identified by a valuation professional but might be completely missed by someone who is not accustomed to evaluating valuation reports. The following is a checklist to assist you in evaluating a report to at least catch basic problems and errors …
  • Rules of Thumb – Are They Useful? — Rule of Thumb: An Italian restaurant should sell for 30% of gross revenue.  Valuation completed! Draw up the paperwork, right? Reducing the complexity of business valuation to rules of thumb is an appealing proposition. Avoiding complex cash flow calculations and side stepping necessary adjustments makes the process of valuation more appealing and more accessible to the lay user. However, one must still deal with the dilemma: “Should it be done simply because it can be done?” Is here value in the simplicity of rules of thumb? …